Stilt Corporation purchased a 40% interest in the common stock of Shallow Company for $2,660,000 on January 1, 2013, when the book value of Shallow's net equity was $6,000,000. Shallow's book values equaled their fair values except for the following items:
Required:
Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill.

Question

Stilt Corporation purchased a 40% interest in the common stock of Shallow Company for $2,660,000 on January 1, 2013, when the book value of Shallow's net equity was $6,000,000. Shallow's book values equaled their fair values except for the following items:
  Required:
Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill.

Quizplus · Accepted Answer

The Answer of Stilt Corporation purchased a 40% interest in the common stock of Shallow Company for $2,660,000 on January 1, 2013, when the book value of Shallow's net equity was $6,000,000. Shallow's book values equaled their fair values except for the following items:
  Required:
Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill.

Stilt Corporation Purchased a 40% Interest in the Common Stock